music business

Major labels ‘face DoJ antitrust probe’

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Two major labels have been served notice of a fresh antitrust investigation, a music business newsletter reports today. MusicAlly’s daily Bulletin suggests that the as-yet-unlaunched TotalMusic service, currently backed by Universal and Somy BMG, has prompted notices from the US Department of Justice. The report suggests all four major labels have been contacted.

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An interview with Martin Mills

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It’s the conventional wisdom amongst some Reg readers that “the evil record labels” are dying, and deservedly so. But such a simplified view of the world overlooks the contribution of the independent sector – which operates very differently to the Big Four. Independents have a different business model, and have embraced digital networks as an … Read more

An interview with John Kennedy

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In an interview from the music business annual Midem, we speak to John Kennedy, chairman and CEO of the IPFI, the international trade group representing record labels. Here he talks about the new ISP strategy, and the future of the big label. [Full interview at The Register here]

Rebranding the RIAA

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Last week, we reported the possibility that the lobby group that represents America’s sound recording owners (RIAA) might merge with the global sound recording owners lobby group (IFPI). This raised the awful possibility that the Recording Industry Ass. of America would disappear – making all those “Boycott the RIAA”-type domains useless. Zut alors! The new … Read more

Nokia radical bundling deal deserves applause

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You could be forgiven for thinking that Nokia’s music announcement yesterday was yet another subscription service. The phone giant didn’t help dispel the notion by omitting some details from the official press material. However, we were able to put more flesh on the bones of the announcement last night. It’s beginning to look as if Nokia’s move, blessed by the world’s biggest and most aggressive record company, represents a radical new direction for the music business.

Essentially, the deal bundles digital music for “free” with a Nokia phone. You can acquire unlimited songs for a year through the Nokia Music Store, then keep the music you’ve acquired if you don’t want to continue the deal. You’ll be able to play the songs on a PC (alas, not a Mac or Linux) and your Nokia.

By contrast, most music subscription services on offer today time-bomb the music, so that when you leave the service, it dies. That’s fine if you think of it as a sort of “cached” on-demand radio, but not as a way of acquiring a permanent collection; it’s proved unacceptable to consumers, who are used to keeping the music they’ve acquired for life… or until they’re burgled, or the house burns down.

In other words, it’s a loyalty program for Nokia customers, with music as the bait.

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In The City: Vinyl lives!

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Manchester’s In The City music conference this year was the first without the presence of co-founder Tony Wilson, who died two months ago.

But the local music network – and some parts of the London business – rallied to bring the event back to its roots. Unlike the endless circuit of “Future Of Music” talking shops, the panels at In The City reflect a much more practical focus. The event itself is still, first and foremost, about the 600-odd unsigned acts who perform over the three days.

Here are my highlights…

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Apple, Tesco ‘most to blame’ for music biz crisis

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A new report suggests that Apple and Tesco, not P2P file sharers, should take the most blame for the woes of the British music industry.

The report, prepared privately by consultants Capgemini for the Value Recognition Strategy working group, set out to examine the “value gap”, the amount sound recordings revenue has fallen in the UK since 2004. The report remains confidential, but details are starting to emerge.

The consultants suggest that “format changes” and price pressure from discounted CDs on sale in supermarkets, are most to blame for this “value gap”.

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File sharers: spare me the phony outrage

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Last week, the ailing sound recording industry in America found someone even dumber to pick on. Kazaa user Jammie Thomas had got on the internet, and was doing just what the adverts and mass media say you should do once you’re there – fill your boots with free stuff.

This is a case that should make everyone involved feel ashamed of themselves – with no exceptions. But I’m amazed by the howls of outrage.

Without this free stuff, the internet would be worth very little: it’s simply an extension of the telephone network with added pictures, and would otherwise be priced accordingly, as a low-cost or free addition to your phone bill. Everyone knows that pictures of cats falling down stairs, or even feature-light web-based office suites aren’t really money spinners. Google and BT can’t say so explicitly, but most people are only here for the free music or porn. The rest are here for online games. The stuff about getting broadband “to help with the kids’ homework” is sanctimonious crap.

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